Slide 1: Unleashing the Gold Potential of Brazil
Unleashing the Gold Potential of Brazil Building a Mid-Tier Gold Company Q4 2005 This presentation contains forward-looking statements that involve risks, uncertainties and assumptions. Such statements are only predictions, and the Company's actual financial conditions and results of operations coul
Slide 2: Corporate Profile
Corporate Profile • Emerging mid-cap gold producer: 20,000 oz in 2005 +230,000 oz in 2008 • Iron Quadrangle, Brazil • Reserves: 370 k oz • Resources: 3.2 mm oz* • Measured & Indicated 2.4 mm oz • Reserves end of ‘05: >500,000 oz • Active explorer: 62,500 acres * Jaguar completed a Feasibility Study
Slide 3: Corporate Data
Corporate Data* • Share Listing: TSX “JAG”, “JAG.WT” • Shares Outstanding: – Basic: 33.3 mm – FD: 45.3 mm • Management/Founders: 28% Cdn. $ • Share & Warrant Price: $4.00 & $0.70 • Market Capitalization: $133 mm • In-the-Money Warrants and Options: $7.5 mm • Cash & Equivalents: $17 mm * As of Decemb
Slide 4: Jaguar's Concept
Jaguar’s Concept • Consolidator of major mining district • Resource conversion: 3.2 mm oz • In production: oxides help finance sulfides • Growth: +230,000 oz/yr in 2008 • Potential to double resources • Strategic relationships: AngloGold Ashanti • Financially conservative 4
Slide 5: Belo Horizonte
Belo Horizonte Belo Horizonte Minas Gerais ▪ Rio ▪ São Paulo ▪ • Excellent infrastructure • People/services 5
Slide 6: Brazil Comparison
Brazil Comparison Exploration Investment per Country Brazil Canada Australia Total surface area (106 km2) 8.5 9.9 7.7 Archean Shield (106 km2) 2.5 2.2 1.2 Production (Au kg/km2) 0.9 3.4 5.7 US$/ha Australia 28 Canada 21 Chile 21 Brazil 2.7 6
Slide 7: Quadrilátero Ferrífero
Quadrilátero Ferrífero • Major mining region: – Gold – Iron ore, CVRD • Massive greenstone belt: 60 mm oz • AngloGold & Eldorado: > 300,000 oz/yr • Regional gold capex: > US$150mm • Excellent infrastructure • No Garimpeiros/illegal mining 7
Slide 8: Quadrilátero Ferrífero (Jaguar's Position 62,500 acres)
Quadrilátero Ferrífero (Jaguar’s Position 62,500 acres) 8
Slide 9: Good Vertical Potential
Good Vertical Potential Paciéncia Caeté CIC Plant Santa Barbara S&o Bento 1500 M 1800 M 1500 Ma 1800 M 2400 ME @ 2400M = Already Mined Measured & Indicated ll Jaguar Mining Sites Inferred [EN AngloGold Mines <q i In Depth and / or Lateral Potential [__] Eldorado Mine BRQ2-14.04 Turmalina SURFACE > 3
Slide 10: District's Evolution of Discoveries
District’s Evolution of Discoveries MINA Grande 16 Million Ounces Surface Area 2,000 m2 350 m 600 M Potential at Depth 2,453 m Understood 10
Slide 11: Proven Operating Leaders
Proven Operating Leaders Lúcio Cardoso, Deputy COO Juvenil Felix, COO Built and ran Crixás Mine CEO of Anglo Brazil, 18 years 11
Slide 12: Experienced Board
Experienced Board New Director Gil Clausen • +22 years, mining industry • Placer Dome • Washington Group • Augusta Resource Corp. Bill Andy Tony Juvenil Gary Dow Burns Griffiths Felix German 12
Slide 13: Operations & Resources
Operations & Resources • Total resources: 3.17 mm oz * – Measured & Indicated: 2.34 mm oz – Inferred: 830,000 oz • Feed Grades: – Oxides: 2.5-3 g/t, 29% – Sulfides: +/- 5-7 g/t, 71% • Production capacity, early 2006: – 3,000 tonnes/day oxides – 800 tonnes/day sulfides * Jaguar completed a Feasibilit
Slide 14: Projected Plants
Projected Plants Turmalina Region Sabará Region 1,200 tpd CIL 3,000 tpd Oxides 800 tpd Sulfides ¶ ¶ ¶ ¶ BELO ¶ S. Bárbara Region 1,500 tpd CIL ¶ Sulfide Plant ¶ Sulfide Mine ¶ Oxide Plant Paciência Region Oxide Mine 1,500 – 4,000 tpd CIL 14
Slide 15: Turmalina – Key Points
Turmalina – Key Points Mineral Reserves: 1.9MM tonnes @ 6.0 g/t Au Gold Contained: 370,000 oz Mining Rate: 360,000 tonnes per year Process Recovery: 90% Annual Production: 60,500 oz per year Mine Life: 5.5 years Capital Cost: $19.4 million approx.* Total Cash Cost: $176/oz* Total Cost: $234/oz* * At
Slide 16: Turmalina: Plan view
Turmalina: Plan view Turmalina Sabará ¶ ¶ Belo ¶ S. Barbará ¶ ¶ Paciência Sulfide Plant ¶ ¶ Sulfide Mine Oxide Plant ¶ Oxide Mine Target 1 Target 2 Target 3 4. 5 km Satinoco Turmalina 16
Slide 17: Realizing Turmalina's Potential
Realizing Turmalina’s Potential New Mineralized Zone Satinoco Phase I - Feasibility • 370k oz Reserve • Construction Oct ‘05 • Operate Q3 ‘06 Phase II – In Fill • 8 DDH Complete • 200k oz Resource Æ Reserve Q4 ‘05 Phase III – New Oz. • 23K Mt DDH • 400 k oz Resource Æ Reserve • Dec ’05 & Q1 ’06 Resu
Slide 18: Turmalina Project
Turmalina Project Ramp Open Pit Turmalina Orebody Turmalina Plant 18
Slide 19: Caeté Processing/New Oxide Zones
Caeté Processing/New Oxide Zones Reducing Costs Short Haul High Grade/Oxidized 19
Slide 20: New Sabará Plant/Mine – 30,000 oz/yr
New Sabará Plant/Mine – 30,000 oz/yr Reducing Costs by $50/oz • 450,000 TPY Processing • 225,000 T Pad Capacity • 75%-80% Oxide Recovery • Operating Dec ‘05 Zone A Zone B 20
Slide 21: Queiroz CIL Plant - Sulfides
Queiroz CIL Plant - Sulfides Refractory Ore Roasting CIL Sulfide Ore Circuit 800 TPD Circuit Catita Portal Operational Q1 ‘06 21
Slide 22: Pilar – Ramp Underway – Reserves Q2 '06
Pilar – Ramp Underway – Reserves Q2 ‘06 Pilar Mine Santa Bárbara Plant Turmalina Sabará ¶ ¶ Belo ¶ S. Barbará ¶ ¶ Paciência Sulfide Plant ¶ ¶ Sulfide Mine Oxide Plant ¶ Oxide Mine 22
Slide 23: Paciência: Plan view - Exploration
Paciência: Plan view - Exploration km 2 Turmalina Sabará ¶ ¶ Belo ¶ S. Barbará ¶ ¶ Paciência Sulfide Plant ¶ ¶ Target 1 12 Sulfide Mine ¶ Oxide Plant km Oxide Mine Target 2 Target 3 Target 4 Target 5 23
Slide 24: Good Lateral Potential
Good Lateral Potential Recent Drill Results 40 km São Vicente lineament Hole # Width (m) g/t F2-01 13.2 6.63 F2-02 2.35 8.38 F2-04 10.45 6.48 PACIÊNCIA F2-05 F2-11 4.55 8.45 7.75 8.43 12-km strike Santa Isabel Mine 1 mm oz 24
Slide 25: Realizing Paciência's Potential
Realizing Paciência’s Potential Exploration Underground Program Level II Development Resources Æ Reserves Q2 ‘06 Santa Isabel 2 1+ mil oz. 5 1 25
Slide 26: Good Project Pipeline
Good Project Pipeline UNLOCKING ASSET VALUE Regions/Mine Sites Development Production Oxides Caeté Plant -- 2004 Near Term Sabará Plant Q3-Q4 2005 2006 Revenue Sulfides Queiroz Plant Q4 2005 2006 Turmalina 2005-2006 2006 Long Term Value Paciência 2005-2006 2007 Santa Bárbara 2006 2007-08 26
Slide 27: Gold Production and Capacity
Projected Production/Capacity 200 200,000 oz Capacity Gold Production and Capacity (000's oz) Gold Production 150 130,000 oz 130,000 oz 100 75,000 oz 75,000 oz 50 25,000 oz 0 2005 2006 2007 27
Slide 28: Valuation Today
Valuation Today $20 $40 JAG - $22 $100 Market Cap US$ millions 28
Slide 29: Summary of Strengths
Summary of Strengths • Fast and low cost resources to reserves - $5-$8 • Producing • Well financed • Geological potential at depth, strike • Outstanding infrastructure • Experienced and successful management 29
Slide 30: Creating Value – Becoming Mid-Tier Producer
Creating Value – Becoming Mid-Tier Producer 30